Summary: Israel National
News, which is politically aligned with Israel's Likud party yet disagrees
with many of their policies, today reported holes in the Arab boycott of
Israel. The "Oslo War" as referred to in to in their article is what many
Israelis call the current surge of terrorism that started with the signing the
Oslo Accords.

The first
three quarters of 2004 have seen almost a 50% Israeli increase in trade with
Arab countries.

Despite the Oslo War, Israel's
economic relations with Arab states seem to be warming up. Israel's trade with
Arab states rose a total of 47.4% so far in 2004 to $169.7 million, according
to Israel's Central Bureau of Statistics.

Exports to
Jordan rose 66% in the period from January to August, 2004, reaching $90.4
million. Israeli exports to Egypt rose 30.8% during that period, to $18.7
million. Exports to Morocco rose 50%, to $3.2 million.

Earlier this month, the Arab League's Israel Boycott
Bureau called upon the European Union to suspend preferred trade relations with
Israel and to enforce an EU boycott of Israeli products from Judea, Samaria and
Gaza.